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Climate Treaties and Backstop Technologies

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  • Scott Barrett

Abstract

In this paper I examine the design of climate treaties when there exist two kinds of technology, a conventional abatement technology with (linearly) increasing marginal costs and a backstop technology (“air capture”) with high but constant marginal costs. I focus on situations in which countries can gain collectively by using both technologies. I show that, under some circumstances, countries will be better off negotiating treaties that are not cost-effective. When countries prefer to negotiate self-enforcing agreements that are cost-effective, the availability of the backstop technology causes cooperation in abatement to increase significantly.

Suggested Citation

  • Scott Barrett, 2010. "Climate Treaties and Backstop Technologies," CESifo Working Paper Series 3003, CESifo.
    • Handle: RePEc:ces:ceswps:_3003
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp3003.pdf
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    References listed on IDEAS

    as
    1. Michael Hoel & Aart Zeeuw, 2010. "Can a Focus on Breakthrough Technologies Improve the Performance of International Environmental Agreements?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(3), pages 395-406, November.
    2. Barrett, Scott, 2005. "Environment and Statecraft: The Strategy of Environmental Treaty-Making," OUP Catalogue, Oxford University Press, number 9780199286096.
    3. Golombek Rolf & Hoel Michael, 2004. "Unilateral Emission Reductions and Cross-Country Technology Spillovers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(2), pages 1-27, September.
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    Cited by:

    1. Armando Zavaleta, 2016. "Climate Change and Breakthrough Technologies: The Role of Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 597-617, August.
    2. Gregory F. Nemet and Adam R. Brandt, 2012. "Willingness to Pay for a Climate Backstop: Liquid Fuel Producers and Direct CO2 Air Capture," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).

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    More about this item

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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